Indonesia Online Advertising Market Outlook to 2021 : Ken Research

Ken Research Latest report titled “Indonesia Online Advertising Market Outlook to 2021- Significant Rise in Internet, Mobile and Social Media User Penetration to Drive Growth” provides a comprehensive analysis of digital advertising market in Indonesia. The report covers market size, segmentation on the basis of medium, type, sectors and pricing model of online advertising. The report also covers market in different aspects such as developing trends in the market, market share of major advertising platform and company profiles for major online advertising agencies and publishers in Indonesia online advertising market. The report provides detailed overview on future outlook & projections with analyst recommendations for the industry.

Industry Overview

Indonesia online advertising market has witnessed a phenomenal growth owing to a remarkable increase in the number of internet users over the years along with increasing mobile and social media users. On the grounds of this, the market has recorded an amplified overall expenditure from USD ~ million in 2015 to USD ~ million in 2016. Rising trend in the e-commerce market, smartphone and tablet penetration, increase in the number of social media users and the new product launches by the publishers have augmented the growth of online advertising market in Indonesia over the past five years.

Market Segmentation of Indonesia Online Advertising Market

Indonesia online advertising market has been segmented on the basis of medium, type, sectors and pricing model of online advertising. Indonesia online advertising market is dominated by desktop advertising in terms of segmentation by medium with a share of ~% followed by mobile advertising with a share of ~% in the market in 2016.

By type of online advertising, the market is dominated by search and banner advertising with a spending of USD ~ million and USD ~ million respectively, in 2016. In 2016, advertisement spending is generated by sector was majorly from FMCG/Retail sector which amounted to USD ~ million.

Indonesia online Advertising market has been segmented by types of performance based pricing models such as Cost per Mile (CPM), Cost per Click and Cost per Action. In 2016, Cost per Mile held the highest percentage share (~ %) among other models as it extends a very low financial risk and also the expected revenue per impression can be easily calculated through CPM model.

Future Potential of Indonesia Online Advertising Market

Indonesia online advertising market is expected to grow at a CAGR of ~% during the forecast period of 2017-2021 owing to factors like rising number of smartphone users, country’s economic growth and growing online population. The growth is also expected to be driven by the rising number of social media users, booming ecommerce market, rise of independent advertisement advisors, support from government, publishers and mobile networks and other such relevant factors.

Competitive Scenario in Indonesia Online Advertising Market

Competitive Scenario has been analyzed for advertising agencies as well as platforms. Major advertising agencies in the country include Grey Indonesia, Ogilvy One, Milestone and Brightstars.

The major online advertising platforms in Indonesia are Facebook, Instagram, Google, YouTube, Twitter and others. Facebook and Instagram together led the market with a share of ~% and Google held the second position with a share of ~% in the total revenues in 2016. Since, the demand for video advertising is also rising, YouTube is competing with a share of ~% while twitter accounted for a share of ~% in the total revenue in 2016.

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